Justice Christine Adamson banned the event on Friday, just a day before the rally is planned to take place and ahead of a separate Federal Court case to determine if the rally is in breach of the Racial Discrimination Act.

Folkes has agreed to the orders and will not hold or speak at a rally in Cronulla tomorrow and will publish a cancellation notice.

Following Justice Adamson's decision, Party for Freedom chairman Nick Folkes's legal representative, James Loxton, reportedly told the Federal Court in a separate hearing the effect of the prohibition "is if my client does attend he may be arrested, if he attempts to speak he may be arrested".

But he said large crowds were likely to descend on Cronulla despite the prohibition.

"They'll be looking to somebody -- not only the police, but someone from the party -- to lead them and to assist police," he is reported to have said.

Before the ruling Folkes told the ABC the memorial was about celebrating Australian culture, not violence.

"I believe it's an important time when Australians did stand up," Mr Folkes said.

Cronulla memorial Facebook pages should be used to spread news that rally is banned, lawyer for council tells court https://t.co/JUj9df8eIi

The Party For Freedom Facebook Page has since shared a blog post accusing the judge of "supporting terrorists".

"Yes people are still going," the said in a comment below the post.

The Federal Court separately considering an application from Muslim community leader Jamal Rifi, who has asked the court to find the memorial event in breach of the Racial Discrimination Act.

"They have every right to express their view but their right is not absolute," he told the ABC.

"We also have a right as a citizen of this country not to be insulted, not to be humiliated and not to be intimidated.”

On Thursday Ian Temby QC, who appeared for the Police commissioner, told a court hearing the planned rally risked fresh violence.

The far-right group was planning "the biggest Aussie pride rally this country has ever seen" to "commemorate" the 10th anniversary of the infamous Cronulla riots. Busloads of counter-protesters were reportedly intending to stand in opposition to the rally.

Party For Freedom, which describes itself as "a patriotic conservative alternative to the major treasonous political parties", had been mail-dropping flyers and posting online ads for its "Cronulla 10 Year Memorial" event on December 12 at a Cronulla reserve.

The 2005 Cronulla riots, one of the ugliest episodes in recent Australian history, was the culmination of a long-bubbling undercurrent of tension and ill-will between mostly young Caucasian and Middle Eastern men in the southern suburbs of Sydney, which resulted in a day of fighting, intimidation, vandalism and mob violence.

After making headlines around the world, the riot led to 104 arrests - 51 from the original riot and 53 from later riots.